Bernstein analysts believe that Apple (AAPL) faces downside risk to its December quarter earnings due to a significant increase in memory chip costs, which will squeeze iPhone profits. The firm lowered its earnings per share (EPS) forecast for Apple from $3.00 to $2.87, below the consensus estimate of $2.92. Despite short-term profit pressures, Bernstein maintained its "Outperform" rating and $370 price target for Apple, citing the company's continued role as a key entry point into consumer AI.